Please enable JavaScript.

Coggle requires JavaScript to display documents.

CHAPTER 8 - Coggle Diagram

- - - - Evidence gathered must cover fs assertions
    - - External > internal
      - Auditor generated > Client generated
      - Internal more reliable when controls effective
      - Written documentary evidence > Oral
      - Original documents > Copied/ faxes
- - - - Occurrence
      - Completeness
      - Cut-off
      - Classifications
      - Presentations
      - Accuracy
    - - Completeness
      - Obligations & rights
      - Valuation, accuracy and allocations
      - Existence
      - Classification
      - Presentation
- - - - Evaluate operating effectiveness of controls
    - - Detect material misstatement at the assertion level
        
        Test of details
        
        Classes of transactions, acc. balances, disclosures
        
        Substantive analytical procedures
  - - - Review of current year fs with prior period / budgeted info
    - - Use of interrelationship bet. data (financial & non-financial) to estimate expected value in fs
- - - - Overstatement/ Understatement
        
        Start with accounting records to supporting documents / other evidence
    - - Resulting in understatement
        
        Start with supporting documents/ other evidence to accounting records
  - - - Expenditure /assets
        
        Overstatement
        
        Selecting debit entry in nominal ledger
    - - Income/ liabilities
        
        Understatement
        
        Selecting items from evidence